Question

On January​ 1, Five Star Services has the following​ balances:
Accounts Receivable $ 25 comma 000 ​(debit)
Bad Debts Expense  $ 0
Five Star Services has the following transactions during​ January: Credit sales of $ 100 comma 000​, collections of credit sales of $ 90 comma 000​, and writeminusoffs of $ 15 comma 000. Five Star Services uses the direct writeminusoff method. At the end of​ January, the balance of Accounts Receivable is​ ________.

Answer 1

At the end of​ January, the balance of Accounts Receivable is​ 33,000.

Explanation:

On January​ 1, Five Star Services has the following​ balances:

Accounts Receivable $ 25 comma 000 ​(debit)

Bad Debts Expense  $ 0

Five Star Services has the following transactions during​ January: Credit sales of $ 100 comma 000​, collections of credit sales of $ 90 comma 000​, and writeminusoffs of $ 15 comma 000. Five Star Services uses the direct writeminusoff method. At the end of​ January, the balance of Accounts Receivable is​ 33,000.